BILL NUMBER: AB 1239	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Gordon and Atkins

                        FEBRUARY 27, 2015

   An act to amend Section 42885 of the Public Resources Code,
relating to tire recycling.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1239, as introduced, Gordon. Tire recycling: California tire
regulatory fee.
   The California Tire Recycling Act requires, until January 1, 2024,
a person who purchases a new tire to pay a California tire fee of
$1.75 per tire, for deposit in the California Tire Recycling
Management Fund, for expenditure by the Department of Resources
Recycling and Recovery upon appropriation by the Legislature, to fund
the waste tire program and for other purposes, including to pay for
the costs associated with a waste tire and used tire hauler program
and manifest system, as provided. After January 1, 2024, existing law
reduces the tire fee to $0.75 per tire.
   Existing law requires any person generating waste tires or used
tires that are transported or submitted for transportation, for
offsite handling, altering, storage, disposal, or for any combination
thereof, to complete a California Uniform Waste and Used Tire
Manifest, as required by the department. Existing law requires a
generator to provide the manifest to the waste and used tire hauler
at the time of transfer of the tires, and to submit to the
department, on a quarterly schedule, a legible copy of each manifest.

   This bill would require a waste tire generator, as defined, to pay
a California regulatory tire fee according to a schedule of amounts
to be determined by the department. For a waste tire generator that
is a retail seller of new tires to end user purchasers, the bill
would authorize the department to determine the California tire
regulatory fee in an amount that is sufficient to generate revenues
equivalent to the reasonable regulatory costs incurred by the
department incident to audits, inspections, administrative costs,
adjudications, manifesting, registration, and other regulatory
activities regarding these waste tire generators, but not to exceed
$1.25 per new tire sold, as provided. For waste tire generators that
are not retail sellers, the bill would authorize the department to
determine the amount of the California tire regulatory fee in a
amount that is sufficient to generate revenues equivalent to the
reasonable regulatory costs incurred by the department incident to
audits, inspections, administrative costs, adjudications,
manifesting, registration, and other regulatory activities regarding
those waste tire generators, depending upon the nature of the
activity generating waste tires, the number of waste tires generated,
and other appropriate bases. The bill would prohibit the aggregate
amount of California tire regulatory fees imposed to exceed the
aggregate reasonable regulatory costs incurred by the department
incident to audits, inspections, administrative costs, adjudications,
manifesting, registration, and other regulatory costs for regulating
waste tire generators.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 42885 of the Public Resources Code, as amended
by Section 31 of Chapter 401 of the Statutes of 2013, is amended to
read:
   42885.  (a)  (1)    For purposes of this
section, "California tire fee" means the fee imposed pursuant to 
subdivision (b) of  this section. 
   (2) For purposes of this section, "California tire regulatory fee"
means the fee imposed pursuant to subdivision (c) of this section.

   (b) (1) A person who purchases a new tire, as defined in
subdivision  (g),   (h),  shall pay a
California tire fee of one dollar and seventy-five cents ($1.75) per
tire.
   (2) The retail seller shall charge the retail purchaser the amount
of the California tire fee as a charge that is separate from, and
not included in, any other fee, charge, or other amount paid by the
retail purchaser.
   (3) The retail seller shall collect the California tire fee from
the retail purchaser at the time of sale and may retain 11/2 percent
of the fee as reimbursement for any costs associated with the
collection of the fee. The retail seller shall remit the remainder to
the state on a quarterly schedule for deposit in the California Tire
Recycling Management Fund, which is hereby created in the State
Treasury. 
   (c) (1) A waste tire generator, as defined by Section 18450 of
Title 14 of the California Code of Regulations, shall pay a
California tire regulatory fee according to a schedule of amounts to
be determined by the department pursuant to the following:  

   (A) For a waste tire generator that is a retail seller of new
tires to end user purchasers, the amount of the California tire
regulatory fee shall be established by the department in an amount
that is sufficient to generate revenues equivalent to the reasonable
regulatory costs incurred by the department incident to audits,
inspections, administrative costs, adjudications, manifesting,
registration, and other regulatory activities regarding these waste
tire generators, but not to exceed one dollar and twenty-five cents
($1.25) per new tire sold. The department may differentiate in
setting fees between retail sellers of new tires who are waste tire
generators depending upon the nature of the retail seller's activity
generating waste tires, the number of waste tires generated, and
other appropriate bases.  
   (B) For a waste tire generator that is not a retail seller, the
amount of the California tire regulatory fee shall be established by
the department in an amount that is sufficient to generate revenues
equivalent to the reasonable regulatory costs incurred by the
department incident to audits, inspections, administrative costs,
adjudications, manifesting, registration, and other regulatory
activities regarding these waste tire generators. The department may
differentiate between categories of waste tire generators that are
not retail sellers in setting fees depending upon the nature of the
activity generating waste tires, the number of waste tires generated,
and other appropriate bases.  
   (C) The aggregate amount of California waste tire fees imposed
pursuant to subparagraphs (B) and (C) shall not exceed the aggregate
reasonable regulatory costs incurred by the department incident to
audits, inspections, administrative costs, adjudications,
manifesting, registration, and other regulatory costs for regulating
waste tire generators.  
   (2) A waste tire generator shall remit the fees assessed pursuant
to this subdivision to the state on a quarterly schedule for deposit
in a separate account in the California Tire Recycling Management
Fund.  
   (c) 
    (d)  The department, or its agent authorized pursuant to
Section 42882, shall be reimbursed for its costs of collection,
auditing, and making refunds associated with the California Tire
Recycling Management Fund, but not to exceed 3 percent of the total
annual revenue deposited in the fund. 
   (d) 
    (e)  The California tire fee imposed pursuant to
subdivision (b) shall be separately stated by the retail seller on
the invoice given to the customer at the time of sale. Any other
disposal or transaction fee charged by the retail seller related to
the tire purchase shall be identified separately from the California
tire fee. 
   (e) 
    (f)  A person or business who knowingly, or with
reckless disregard, makes a false statement or representation in a
document used to comply with this section is liable for a civil
penalty for each violation or, for continuing violations, for each
day that the violation continues. Liability under this section may be
imposed in a civil action and shall not exceed twenty-five thousand
dollars ($25,000) for each violation. 
   (f) 
    (g)  In addition to the civil penalty that may be
imposed pursuant to subdivision  (e),   (f)
 the department may impose an administrative penalty in an
amount not to exceed five thousand dollars ($5,000) for each
violation of a separate provision or, for continuing violations, for
each day that the violation continues, on a person who intentionally
or negligently violates a permit, rule, regulation, standard, or
requirement issued or adopted pursuant to this chapter. The
department shall adopt regulations that specify the amount of the
administrative penalty and the procedure for imposing an
administrative penalty pursuant to this subdivision. 
   (g) 
    (h)  For purposes of this section, "new tire" means a
pneumatic or solid tire intended for use with onroad or off-road
motor vehicles, motorized equipment, construction equipment, or farm
equipment that is sold separately from the motorized equipment, or a
new tire sold with a new or used motor vehicle, as defined in Section
42803.5, including the spare tire, construction equipment, or farm
equipment. "New tire" does not include retreaded, reused, or recycled
tires. 
   (h) 
    (i)  The California tire fee shall not be imposed on a
tire sold with, or sold separately for use on, any of the following:
   (1) A self-propelled wheelchair.
   (2) A motorized tricycle or motorized quadricycle, as defined in
Section 407 of the Vehicle Code.
   (3) A vehicle that is similar to a motorized tricycle or motorized
quadricycle and is designed to be operated by a person who, by
reason of the person's physical disability, is otherwise unable to
move about as a pedestrian. 
   (i) 
    (j)  This section shall remain in effect only until
January 1, 2024, and as of that date is repealed, unless a later
enacted statute, that is enacted before January 1, 2024, deletes or
extends that date.
  SEC. 2.  Section 42885 of the Public Resources Code, as amended by
Section 32 of Chapter 401 of the Statutes of 2013, is amended to
read:
   42885.  (a)  (1)    For purposes of this
section, "California tire fee" means the fee imposed pursuant to 
subdivision (b) of  this section. 
   (2) For purposes of this section, "California tire regulatory fee"
means the fee imposed pursuant to subdivision (c) of this section.

   (b) (1) Every person who purchases a new tire, as defined in
subdivision  (g),   (h),  shall pay a
California tire fee of seventy-five cents ($0.75) per tire.
   (2) The retail seller shall charge the retail purchaser the amount
of the California tire fee as a charge that is separate from, and
not included in, any other fee, charge, or other amount paid by the
retail purchaser.
   (3) The retail seller shall collect the California tire fee from
the retail purchaser at the time of sale and may retain 3 percent of
the fee as reimbursement for any costs associated with the collection
of the fee. The retail seller shall remit the remainder to the state
on a quarterly schedule for deposit in the California Tire Recycling
Management Fund, which is hereby created in the State Treasury. 

   (c) (1) A waste tire generator, as defined by Section 18450 of
Title 14 of the California Code of Regulations, shall pay a
California tire regulatory fee according to a schedule of amounts to
be determined by the department pursuant to the following:  

   (A) For a waste tire generator that is a retail seller of new
tires to end user purchasers, the amount of the California tire
regulatory fee shall be established by the department in an amount
that is sufficient to generate revenues equivalent to the reasonable
regulatory costs incurred by the department incident to audits,
inspections, administrative costs, adjudications, manifesting,
registration, and other regulatory activities regarding these waste
tire generators, but not to exceed one dollar and twenty-five cents
($1.25) per new tire sold. The department may differentiate in
setting fees between retail sellers of new tires who are waste tire
generators depending upon the nature of the retail seller's activity
generating waste tires, the number of waste tires generated, and
other appropriate bases.  
   (B) For a waste tire generator that is not a retail seller, the
amount of the California tire regulatory fee shall be established by
the department in an amount that is sufficient to generate revenues
equivalent to the reasonable regulatory costs incurred by the
department incident to audits, inspections, administrative costs,
adjudications, manifesting, registration, and other regulatory
activities regarding these waste tire generators. The department may
differentiate between categories of waste tire generators that are
not retail sellers in setting fees depending upon the nature of the
activity generating waste tires, the number of waste tires generated,
and other appropriate bases.  
   (C) The aggregate amount of California waste tire fees imposed
pursuant to subparagraphs (B) and (C) shall not exceed the aggregate
reasonable regulatory costs incurred by the department incident to
audits, inspections, administrative costs, adjudications,
manifesting, registration, and other regulatory costs for regulating
waste tire generators.  
   (2) A waste tire generator shall remit the fees assessed pursuant
to this subdivision to the state on a quarterly schedule for deposit
in a separate account in the California Tire Recycling Management
Fund.  
   (c) 
    (d)  The department, or its agent authorized pursuant to
Section 42882, shall be reimbursed for its costs of collection,
auditing, and making refunds associated with the California Tire
Recycling Management Fund, but not to exceed 3 percent of the total
annual revenue deposited in the fund. 
   (d)
    (e)  The California tire fee imposed pursuant to
subdivision (b) shall be separately stated by the retail seller on
the invoice given to the customer at the time of sale. Any other
disposal or transaction fee charged by the retail seller related to
the tire purchase shall be identified separately from the California
tire fee. 
   (e) 
    (f)  Any person or business who knowingly, or with
reckless disregard, makes any false statement or representation in
any document used to comply with this section is liable for a civil
penalty for each violation or, for continuing violations, for each
day that the violation continues. Liability under this section may be
imposed in a civil action and shall not exceed twenty-five thousand
dollars ($25,000) for each violation. 
   (f) 
    (g)  In addition to the civil penalty that may be
imposed pursuant to subdivision  (e),   (f),
 the department may impose an administrative penalty in an
amount not to exceed five thousand dollars ($5,000) for each
violation of a separate provision or, for continuing violations, for
each day that the violation continues, on any person who
intentionally or negligently violates any permit, rule, regulation,
standard, or requirement issued or adopted pursuant to this chapter.
The department shall adopt regulations that specify the amount of the
administrative penalty and the procedure for imposing an
administrative penalty pursuant to this subdivision. 
   (g) 
    (h)  For purposes of this section, "new tire" means a
pneumatic or solid tire intended for use with onroad or off-road
motor vehicles, motorized equipment, construction equipment, or farm
equipment that is sold separately from the motorized equipment, or a
new tire sold with a new or used motor vehicle, as defined in Section
42803.5, including the spare tire, construction equipment, or farm
equipment. "New tire" does not include retreaded, reused, or recycled
tires. 
   (h) 
    (i)  The California tire fee may not be imposed on any
tire sold with, or sold separately for use on, any of the following:
   (1) Any self-propelled wheelchair.
   (2) Any motorized tricycle or motorized quadricycle, as defined in
Section 407 of the Vehicle Code.
   (3) Any vehicle that is similar to a motorized tricycle or
motorized quadricycle and is designed to be operated by a person who,
by reason of the person's physical disability, is otherwise unable
to move about as a pedestrian. 
   (i) 
    (j)  This section shall become operative on January 1,
2024.